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The rules of supply and demand economics always end up winning and weekly newlisting data is key. Newlisting data is growing year over year, but it will be the second-lowest newlisting data ever recorded in history. For the fifth time this year, inventory hit my target level with elevated mortgage rates.
Today’s housing market suffers from affordability issues due to mortgage rates in the 7s and high home prices. But since we have such low active listings today, even with 2024 being another year of low home sales, the days on the market are still under 30 days, which means homes that are priced right are selling quickly.
Even as mortgage rates rose, and affordability was pushed out of reach for many potential homebuyers, there are still sufficient buyers who can afford these prices and these rates. After the mortgage rate spike in September 2022, we got significantly more bearish on home prices for 2023. If mortgage rates increase to the 7.5%
Why are home prices still rising even as mortgage rates have gone higher? A number of people predicted that home prices would experience a steep drop as mortgage rates rose, but that’s not what has happened. This is not a new idea — I’ve been dealing with people predicting a housing crash since 2012.
November newlistings fell by about half of the previous month’s rate while home prices saw a welcome decline. Even with mostly lower prices, affordability remains the biggest challenge for buyers as mortgage interest rates climbed toward 7%. The number of newlistings tumbled 48% from October and was down 2.7%
Now that the Federal Reserve has cut interest rates, home buyers should swarm the market with low-interest mortgages …. Consumers considering a change of address are holding out amid forecasts for lower mortgage interest rates in 2025. After the Fed rate cut, mortgage applications jumped 9% in a week. Hold on, there!
Additionally, higher insurance costs and the prospect of future lower mortgage rates also played roles in driving prices higher. 2024 Listings Rise for the First Time in Two Years After two years of sharp declines in home listings , including 2023’s record low since 1994, 2024 saw a 12.5% Pending Sales Decreased by 9.8%
NOTE: Please scroll down to read the other topics in this long blog post on non lender appraisals, MLS hacked, appraisers and real estate agents, Humor, unusual homes, mortgage origination == Massive Missouri Lake Winnebago House for $12.6M But the MLS is also finding new benefits in its partnership with RPR®. percent from 13.8
Financing costs to buy a home have held steady for several months and homeowners – many enjoying historically low, pandemic-related mortgage rates – preferred to sit in front of their screens to root on athletes competing in Paris or soak up the sun during this amazing summer weather. the lowest mark since records were first kept in 2009.
The county saw the combined number of single-family, townhome and condo listings increase in June by 4.4% While that percentage may appear strong, it’s nothing compared to the April-to-May rise of 18%, signaling a probable cooling of newlistings in the future. New single-family-home listings rose 3.8%
Information from the National Mortgage Database shows 83% of all mortgage holders enjoy an interest rate below 5% when today’s average rate is about 6.5%. Falling new inventory is constraining transaction volumes while also supporting higher home prices. Check out the listing’s lookbook and cinematic video flythrough.
Adjustable-rate mortgages were cheap and easy to acquire, home prices were artificially inflated and supply plentiful. The Federal Reserve is supporting the purchase of mortgage-backed securities as well as helping to sustain low interest rates for mortgages. Then the housing bubble burst. range won’t last forever.
However, I will give you all the charts to show Uncle Dave that housing credit doesn’t look like it did in 2008 because the qualified mortgage (QM) law makes that impossible. None of that action has been happening for 14 years because the credit market changed after the 2010 qualified mortgage rule.
Home prices have remained firm over the last two months, even with higher mortgage rates and inventory data. I want to show you how the data changed with mortgage rates heading toward 6% so the next time this happens, we have a better idea of what to expect in the housing market. I have long believed that it’s rare in the U.S.
A newly released housing affordability index from the National Association of Home Builders (NAHB) shows that in Q1 of this year, 38% of a typical family’s income was needed to make a mortgage payment on a median-priced, new, single-family home. Low-income households spend 77% of their earnings to pay for the same new home.
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